13. The number of bank failures in the United States has
steadily increased through the twentieth century.

A) True

B) False

14. If the required reserve ratio is 0.10, and a bank has $10
million in customer demand deposits, then its required reserves are
$1 million.

A) True

B) False

15. When a bank makes a loan, the bank's balance sheet will not
immediately show an increase and a decrease in assets.

A) True

B) False

16. Under the simple assumptions of the chapter (that the public
does not change its holdings of cash, and that banks do not hold
excess reserves), if the required reserve ratio is 0.2, and the Fed
purchases $10 million in government bonds, then the money supply
will increase by $50 million.

A) True

B) False

17. One important reason that banking panics have been
eliminated in the United States since the Great Depression is that
banks are more free today than in the 1930s to lend as they see
fit.

A) True

B) False

18. The most common method used by the Fed to change the money
supply is alterations of FDIC regulations.